TECOM Group, a Dubai-based developer of specialized business districts and dynamic communities, has released its financial results for the nine months and third quarter (Q3) ending September 30, 2024. The Group achieved a record-breaking nine-month performance, reporting a 10 percent year-on-year (YoY) rise in revenue, surpassing AED1.7 billion, and a 23 percent YoY increase in net profit, reaching AED943 million.
Driven by robust demand from both existing and new clients, TECOM Group also celebrated a record performance in Q3, with quarterly revenues climbing 12 percent YoY to AED611 million, while net profit surged 20 percent YoY to AED340 million.
Abdulla Bel Houl, chief executive officer of TECOM Group, noted that the exceptional nine-month and third-quarter results reflect the Group’s dedication to fostering sustainable, long-term growth by leveraging Dubai’s business-friendly environment. He emphasized that the significant revenue and profit growth was driven by high occupancy rates across their diverse portfolio of premium commercial, industrial, and land lease assets. He highlighted the Group’s capability to attract and retain leading companies across six key sectors and mentioned that prudent financial strategies and proactive cost management efforts have played a crucial role in enhancing their impressive bottom-line performance and maximizing shareholder value.
Strategic acquisition of Office Park
In October 2024, TECOM Group, through its subsidiary TECOM Investments FZ LLC, finalized the acquisition of Office Park from Emirates REIT for AED720 million (approximately $196.03 million), thereby expanding its portfolio of premium commercial properties and solidifying its prominent position within Dubai’s commercial real estate market.
Strategically positioned in Dubai Internet City, a leading tech hub and part of TECOM Group, Office Park exemplifies the Group’s commitment to achieving strategic growth and robust financial performance through the expansion of its asset portfolio. This acquisition also elevates TECOM Group’s total asset investments in 2024 to over AED2.7 billion.
Office Park represents a prime grade-A commercial property that is expected to have an immediate positive effect on the Group’s financial outcomes, in addition to offering promising sustainable yields and opportunities for value creation.
Furthermore, the acquisition of Office Park aligns with TECOM Group’s strategy to identify new growth avenues by enhancing the value of its portfolio through the acquisition of high-quality commercial real estate assets, capitalizing on the strong and ongoing demand for grade-A commercial spaces in Dubai.
Funding success in startups
Additionally, in October 2024, funding secured by startups within TECOM Group PJSC’s entrepreneurship incubator, in5, exceeded AED7.8 billion (around $2.1 billion) since its inception. This milestone reflects Dubai’s supportive innovation ecosystem, which nurtures business and talent growth. This announcement, made during Expand North Star—the world’s largest startup and investor event held in Dubai from October 13-16—showcases a remarkable 163 percent increase in funding compared to 2023, highlighting the accelerated growth of in5’s startups this year.
Since its launch in 2013, in5 has facilitated the growth of over 1,000 startups across technology, media, design, and science sectors. This includes in5 Tech at Dubai Internet City, in5 Media at Dubai Production City, and in5 Design at Dubai Design District (d3). In5 Media has reported a 20 percent annual growth in active startups during the first half of this year, driven by government initiatives aimed at strengthening the regional creative economy, including Dubai Media’s vision to enhance media institutions and attract diverse talent.
Expansion of asset portfolio
In August 2024, TECOM Group completed the acquisition of new commercial and industrial assets as part of its AED1.7 billion strategic plan announced in May 2024. This milestone coincides with TECOM Group’s announcement of developing premium Grade-A office spaces at Dubai Internet City, bringing the total value of the Group’s investments in 2024 to over AED2 billion (approximately $544.5 million).
The AED1.7 billion strategic plan elevates TECOM Group’s portfolio of high-quality commercial assets to over 10 million square feet of gross leasable area (GLA). Additionally, it expands its land leasing portfolio to 179 million square feet, reaffirming its role as a strategic driver in Dubai’s business landscape. TECOM Group has also unveiled plans for Grade-A offices at Dubai Internet City with the Innovation Hub Phase 3 project. With an investment of AED340 million, this development aims to meet the increasing demand for high-quality commercial real estate in the city.
More acquisitions
TECOM Group has also finalized the acquisition of two operational Grade-A office buildings at Dubai Internet City. The AED420 million transaction will add 334,000 square feet of premium GLA to the Group’s commercial portfolio. These buildings maintain high occupancy rates, supported by both regional and international companies, ensuring positive contributions to the Group’s revenue stream this year. Furthermore, TECOM Group is responding to the growing demand for its world-class portfolio by adding a land bank of 13.9 million square feet for industrial leasing at Dubai Industrial City through an AED410 million transaction, raising its total managed land leasing portfolio to 179 million square feet.
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